In brief

On 28 April 2020, it was presented before the Chamber of Senators an initiative of reform to the Insolvency and Bankruptcy Law that pretends to add an emergency insolvency proceeding. Such proceeding foresees that companies that are financially affected by an emergency (such as the COVID-19 pandemic, for example) can request and be subject to an automatic declaration of insolvency.

Among the main proposals of additions, there is the creation of a new insolvency proceeding with the following characteristics:

In brief

The Federal Judiciary Council issued on April 27, 2020, the General Resolution 8/2020 on the Work Plan and Contingency Measures in the Jurisdictional Entities as a consequence of the Covid-19 Virus (the "Resolution").

The Resolution establishes that during the period from May 6 to May 31, 2020, only new requests, claims, ancillary proceedings and appeals, i.e. not previously filed, will be processed in urgent cases, regardless of whether they are filed physically or electronically.

On Friday, the Florida Office of Financial Regulation closed Wakulla Bank, headquartered in Crawfordville, Florida, and appointed the FDIC as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Centennial Bank, headquartered in Conway, Arkansas, to assume all of the deposits of the failed bank.

On Friday, the Washington Department of Financial Institutions closed Shoreline Bank, headquartered in Shoreline, Washington, and appointed the FDIC as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with GBC International Bank, headquartered in Los Angeles, California, to assume all of the deposits of the failed bank.

On Friday, the Office of the Comptroller of the Currency closed First National Bank, headquartered in Rosedale, Mississippi, and appointed the FDIC as receiver.

Tuesday, the Financial Crisis Advisory Group (FCAG) issued its report on “the standard-setting implications of